Announcement of IDA Assists Water Supply Project in India on September 14, 1978

FOR IMMEDIATE ~ELEASE •World Bank 1818 H Street, N.W. 1 Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 79/13 SEPTEMBER 14, 1978 IDA ASSISTS WATER SUPPLY PROJECT IN INDIA The International Development Association (IDA), an affiliate of the World Bank, today announced the approva1 of a credit of $38 mil- lion for a water supply and sewerage project in eight rapidly growing towns in India's Punjab state. The $78 mill ion project is part of the Government of Punjab's water supply and sewerage program through 1982. A primary benefit will • be an improved water and sewerage service in the eight tov;ns - Ju 11 undur, Amritsar, Ludhiana, Moga, Patiala, Bhatinda, Rajpura and Pathankot - where it is most urgently needed. A total of two million people are expected to benefit from improved water supply and sewerage service. The IDA credit to India is for 50 years. It is interest free, but carries a service charge of 3/4 of 1% to meet fDA's administrative costs. NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T ECHN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Punjab Water Supply and Sewerage India $77. 6 mi 11 ion • IDA FINANCING: $38 million, standard IDA terms OTHER FINANCING: Life Insurance Corporation of India; participating municipal corporations or committees; and the Government of Punjab~ IMPLEMENTING ORGANIZATION: The Punjab Water Supply and Sewerage Board SCO 123-124 Sector IFC Chandigarh, India Cables: PUNWATER, CHANDIGARH PROJECT DESCRIPTION: It is part of the Government of Punjab's urban water supply and sewerage program through 1982. The project covers eight towns - Jullundur, Amritsar, Ludhiana, Moga, Patiala, Bhatinda, Rajpura and Pathankot. The water supply works include construction of tubewells, service reservoirs, distribution mains, service connections (about 90,000) and treat- • ment \.vOrks for two towns. The sewerage component will provide for service connections including WC installations (about 140,000), laterals, interceptors, outfall mains, pumping stations and disposal facilities. PROCUREMENT: Contracts for equipment and materials valued about $14 million will be awarded on the basis of inter- national competitive bidding in accordance with IDA guidelines. A margin of preference of 15% or the current import duty, whichever is lower, will be granted to local manu- facturers. Contracts for equipment and materials valued about $22 million and civil works ($21 .4 mill ion) will be awarded on the basis of local competitive bidding. CONSULTANTS: Total of about 500 man-months of local consultant services ($1,000 per man-month) will be required. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 17% 1983 - 0 - •